Designated Entities Clause for Charter Parties
The use of so-called OFAC Clauses in maritime contracts – particularly those involving a US entity – is increasing and such clauses often place a considerable burden of compliance on non-US owners. The intention with this project is to draft a standard wording that appropriately addresses the application of OFAC and similar legislation in other countries to owners and charterers – mainly to raise awareness of OFAC between the parties to a charter party. BIMCO is working with the International Group of P&I Clubs to produce this clause and OFAC has been consulted as part of the process. It is expected that work on this clause will be completed in spring 2013.
Virtual Arrival Clause for Voyage Charter Parties
Following the adoption of the Slow Steaming Clauses for Time and Voyage Charter Parties, the Working Group continues work on a virtual arrival clause. It was originally the intention to address the concept of ‘Virtual Arrival’ in the voyage charter party version of the Slow Steaming Clause, but in order to keep the clauses simple, the Working Group has decided to create a separate free-standing Virtual Arrival Clause. It is expected that a final clause will be ready for adoption in Spring 2013.
Hull Fouling Clause
Work is currently on-going to develop a standard Hull Fouling Clause to help in the apportionment of costs and responsibilities in the event a vessel spends a disproportionate time idle in tropical waters resulting in marine growth on the vessel’s underwater parts that affects performance. The Working Group expects the Clause to be ready for adoption in May 2013.
GUARDCON – Time Charter Party Clause
Following the publication of the GUARDCON contract, BIMCO has received a request for a “GUARDCON Clause” for time charter parties to regulate the use of armed/unarmed guards under a time charter party whereby the charterers request, arrange and pay for the security guards – but where the registered owners remain the party signing the employment contract with the private maritime security company. Drafting work will begin shortly.
Radioactivity Risk Clauses for Voyage Charter Parties and Ship Management Agreements
Following the publication of the Radioactivity Risk Clause for Time Charter Parties, which has now been revised and published in a 2012 version, BIMCO has received requests to develop a similar clause for voyage charter parties and ship management agreements.